According to a new report out from Pike and Fischer, residential VoIP is set to enjoy continued growth through the end of the decade. The data suggest that approximately 8.5 million U.S. households will start using VoIP for their home phone service by 2010, which would bring the total number of VoIP connected households to about 30 million. The Pike and Fischer report estimates this would translate to over $11 billion in revenue for VoIP providers.

According to the announcement hailing the new report:

Although top telephone companies such as Verizon and AT&T will see their overall residential lines continue to decline, they will see their VoIP customers increase steadily as they attract more customers to their fiber-optic service packages (Verizon's FiOS and AT&T's U-verse), according to the analysis. The cable industry, which is much further along in capturing VoIP customers, will see subscriber growth slow somewhat from its torrid pace, the report states.

It is unlikely that the smaller VoIP service providers such as Vonage will see much growth because, unlike the facilities-based providers, they lack the advantage of wrapping their service into discount bundles.